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INDUSTRY NEWS: STRONG SALES GAINS PUSH MOMENTUM UP; GIA REVAMPS DESIGN, PRODUCTION COURSES, MORE March 20, 2013 (0 comments)
February Retail Sales Post Largest Gain in Five Months; Jewelry Soars Ahead by 15%
Merrick, NY—Retail sales grew 1.1% in February, according to an article by Reuters in the Chicago Tribune. This is the biggest monthly gain in since September, and has occurred despite increases in both Social Security taxes and gasoline.
The figure more than doubles economists’ original prediction of a 0.5% gain for the month, and comes along with improved reports on job gains and manufacturing for the month. These figures offer hope that consumer spending will not slow as previously predicted in the first half of 2013, and that economic momentum continues to build, says the article. Read the full article here.
Meanwhile, U.S. jewelry store sales rose almost 15% year over year in January 2013, to $1.954 billion, according to a report in Rapaport magazine. The 14.7% gain marks the highest jewelry sales total for a January, as tracked by the U.S. Department of Commerce. In addition, consumer price inflation (CPI) for jewelry fell 3.5% during January. February figures were not available at press time.
Platinum Bridal Sales Grew in 2012; Retailers ‘Lead With The Setting’ For Continued Growth in 2013
New York, NY—A recent sentiment survey commissioned by Platinum Guild International and conducted by GfK Retail and Technology USA, reports strong gains in platinum bridal jewelry sales for 2012.
77% of retailers responding reported equal or better platinum sales compared to 2011, while among those participating in PGI-USA’s Preferred Platinum Partners program, 87% reported equal or better sales. This represents 4.4% increase in platinum business for 2012, and expectations for 2013 are a 7.7% increase.
Entry platinum semi-mounts (those priced under $2500 retail) continue to be a driving force for platinum sales. 73% of jewelers who ordered entry platinum product reported that it sold through and the majority feel it had a positive effect on their overall platinum business. (Shown at top of page, a contemporary bridal set from Christian Bauer.)
In addition to sales data, the survey revealed other factors contributing to platinum sales, including attributes of the metal, its price relative to gold, and well trained sales associates. More than half of the jewelers surveyed lead the engagement ring sale with the setting first, followed by the diamond. With squeezed margins on the diamond, the setting has become a key driver of retailer gross profits, especially as PGI emphasizes platinum carries higher gross profit dollars than gold.
To take advantage of PGI USA’s retailer support programs please contact Kevin Reilly, Director of Business Development at kreilly@pgiglobal.com.
MJSA Manufacturers’ Show Reflects Industry’s Continued Pick-Up in Business
New York, NY—In another encouraging sign for the jewelry industry, MJSA Expo New York closed last week with more than 3,000 jewelry makers and designers in attendance and ready to buy manufacturing supplies and materials. This year’s exposition “was the best I have seen in five or so years,” said Darrell Warren, vice president merchandising at Stuller Inc., Lafayette, LA.
MJSA Expo New York takes place annually in March and is the show for suppliers, designers, and other jewelry manufacturers and craftspeople. Its exhibits feature jewelry bench and manufacturing tools, metal alloys, CAD/CAM systems, gemstones, and component parts, as well as subcontracting and business services related to jewelry making and design.
GIA Overhauls Design and Manufacturing Courses
Carlsbad, CA--GIA (Gemological Institute of America) has completely revamped its Jewelry Manufacturing Arts program. The Institute’s Graduate Jeweler (GJ) and Jewelry Design & Technology (JDT) courses have been fully updated, with redesigned classrooms in Carlsbad outfitted with high-tech manufacturing and learning tools for efficient, visual and interactive education geared to today’s jewelry industry.
“Graduates from these courses will enter the jewelry industry with up-to-date skills and unsurpassed experience,” said Mark Mann, GIA’s director of Global Jewelry Manufacturing Arts. “By incorporating the latest technologies like rapid prototyping of designs using wax mills and 3-D printers, we’re preparing students for how the industry works today, saving future employers time and money.”
All GJ course materials have been updated and moved onto iPads featuring high-quality video and hand illustrations that emphasize key points. GJ and JDT classrooms have also been reorganized and remodeled to accommodate the latest manufacturing technology for jewelry design, jewelry engineering, product development, custom orders, jewelry manufacturing, jewelry repair and quality assurance. Instruction methods have been updated to leverage this technology and to engage today’s students through interactive learning.
The JDT program teaches jewelry design and product development using computer aided design and computer aided manufacturing (CAD/CAM) technology. The GJ program teaches bench jewelers skills like stone setting, jewelry repair, fabrication, pre-finishing, polishing and buffing. All projects are taught using precious metals.
Each program is 6 months in length and, taken together, both provide a strong background in jewelry design, product development, manufacturing, and production. The first of the updated courses are currently in session; the next GJ course begins May 16; the next JDT course on May 23. Both are in Carlsbad and students can apply now. Both programs will be offered at the Institute’s New York campus in 2014.
"Made in USA" Update: 63% of Consumers Say It's Important for Jewelry
Merrick, NY--According to a recent Harris poll reported in Research Brief today, almost two-thirds (63%) of U.S. consumers say it's important that their jewelry be made in the United States. But they care more about the origins of major appliances, furniture, clothing, and automobiles. Jewelry ranked only ninth on the list of 11 items consumers were asked to rank in terms of "Made in USA" importance. Only motorcycles and novelty/gift items were less important to be made here.
Findings varied by age, as well, with manufacturing patriotism for jewelry steadily increasing among older consumers. Among consumers age 18-35, only 47% said it was important for jewelry to be made in the United States. 67% of those age 36-47 said it was; 69% of those age 48-66, and 70% of those over age 66.
The Harris study did not break out consumers by income group, however; there were no findings among luxury consumers vs. all consumers. But previous surveys have shown that affluent customers do care about issues like social and environmental responsibility, and are willing to pay a premium for both American-made and other luxury goods that source and manufacture responsibly and/or give back.